Approaching the New Year, substantial dollar-weakening price action on the USD/CHF pair (a daily chart of which is shown) has reached support around the 1.0400 region, as of early Monday morning in New York. This level was mentioned as significant support on last Tuesday’s Chart of the Day (12/23/2008). This support represents the last major swing low in the current downtrend. A strong breakdown of this level should confirm a downtrend continuation in the pair after a 38.2% pullback retracement. In the event of this breakdown, price could target further key support in the 1.0000 region, with intermediate support in the 1.0300 region.
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One Response to “USD/CHF - On the Verge of a Downtrend Continuation”
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Hi James, I agree with you on the downtrend continuation, but I’m a little afraid of the Swiss govt. intervening, do you think there is a chance that this might happen? And at what level do you think it will happen?